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CUET Accountancy 2025 PYQs2 June Shift 2. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 2 June Shift 2

Accounting

past year questions, Partnership, CUET Accountancy 2025 2 June Shift 2

Easy

common

Reconstitution of partnership does not involves

Solution

✅ Correct Option: 2

Reconstitution of Partnership refers to changes in the existing partnership agreement or relationship between partners, where the partnership continues to exist but with altered terms or composition.

The reconstitution of a partnership occurs in the following circumstances:

  • Admission of a new partner
  • Retirement of an existing partner
  • Death of a partner
  • Change in profit-sharing ratio among existing partners

In all these cases, the partnership firm continues its business operations with a new agreement. The firm's identity is maintained, only the partnership composition or terms change.

Dissolution of Firm, on the other hand, means complete closure and termination of the partnership business. When a firm is dissolved:

  • All business operations cease permanently
  • Assets are sold and converted to cash
  • Liabilities are paid off
  • Remaining amount is distributed among partners
  • The firm's existence comes to an end

Since dissolution involves the complete ending of the firm rather than its continuation with changes, it is not a case of reconstitution.

The key distinction is: Reconstitution = Firm continues | Dissolution = Firm ends

Therefore, Dissolution of firm does not involve reconstitution of partnership.

Related questions:

2025: 26 May Shift 2

Which of the following statements are correct about partnership:-

(A) Each partner carrying on the business is the principal as well as the agent for all the other partners

(B) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner

(C) If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm are to be shared equally by partners

(D) Interest on partner's loan is to be given @ 12% p.a., if the deed is silent about the rate

Choose the correct answer from the options given below:

2022: 23 Aug Shift 2

The central government has prescribed the maximum number of partners in a firm to be _________ under Rule 10 of the companies (Miscellaneous) Rules, 2014.

2025: 22 May Shift 1

All adjustments in respect of partner's salary, partner's commission, interest on capital, interest on drawings, etc. are made through:

2025: 24 May Shift 1

The Partnership Deed usually contains the following details:

(A) Amount of capital to be contributed by each partner

(B) The accounting period of the firm

(C) Profit and loss sharing ratio

(D) The rights, duties and liabilities of each partner

Choose the correct answer from the options given below:

2026: 13 May Shift 2

Arrange the following steps related to valuation of goodwill by Capitalisation of Average Profits method.

(A) Deducting net assets from the capitalised value of average profit.

(B) Ascertain the average profit based on the past few years' performance.

(C) Capitalize the average profit on the basis of the normal rate of return to ascertain the capitalised value of average profits.

(D) Ascertain the actual firm's capital (net assets) by deducting outside liabilities from the total assets (excluding goodwill and fictitious assets).

Choose the correct answer from the options given below:

2025: 26 May Shift 2

Which among the following is NOT true?

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